APY GUY: Maximize Your Savings & Earnings

CD Rates

Best 6 Month CD Rates to Start the New Year!


If you’re in the market for a fixed rate certificate of deposit but don’t want to keep your funds locked up for a long period of time, then a 6 month CD may be a good option for you to kick off 2021.

Normally 6 month CDs would offer much lower APYs (annual percentage yields) when compared to CDs with longer terms such as 3 or 5 years, however, in our current interest rate environment the difference between long and short term rates is far less significant.

We review several hundred banks and credit unions on a monthly basis and have visual pings set up to notify our system whenever rates change. We’ve used this data to compile our top 11 list of the best 6 month CD rates for January 2021.

Top Eleven 6 Month CD Rates

Some institutions featured below have regional exclusivity and others offer their products to customers nationwide. All are federally insured by either the FDIC (for banks) or the NCUA (for credit unions) up to the applicable limits.

Name of InstitutionMinimum DepositAPYAvailability
ParkeBank$5000.75%NJ and PA
Community Wide Federal Credit Union$1,0000.75%nationwide
Spectrum Federal Credit Union$5000.60%nationwide
Navy Federal Credit Union$500.50%must have family in armed services.
Tab Bank$1,0000.50%nationwide
First Internet Bank$1,0000.45%nationwide
Georgia’s Own Credit Union$5000.40%Georgia residents
Bethpage Federal Credit Union$500.40%nationwide
Patelco Credit Union$2500.35%nationwide
PenFed Credit Union$1,0000.30%nationwide
Sallie Mae$2,5000.30%nationwide

To give the annual percentage yields above some context, the current national average on 12 month CD sits at 0.22% APY and the current national average on a money market account sits at just 0.11% APY.

#1 ParkeBank – 0.75% APY

ParkeBank is a full service bank with a regional presence. They are based out of Washington Township, New Jersey and only have 7 branch locations throughout New Jersey and Pennsylvania.

Although they are a small brick and mortar bank, they do offer online banking to clients. You will need to be a resident and stop by a local branch to open a your initial account, but once it’s open you can move funds into other accounts like CDs through their online portal.

You can see their full list of CD rates here.

#2 Community Wide Federal Credit Union – 0.75% APY

Community Wide Federal Credit Union is a small member-owned institution based out of South Bend, Indiana. They were founded in 1967 and relied on seed money from the Catholic Church to survive their early days. Today, like many local credit unions, even if you don’t live, work or worship in South Bend, Indiana you can still become a member by joining one of their partner organizations. These memberships typically come with annual fees though, so be mindful of that when calculating potential earnings on your CD. You will also be required to make a minimum deposit into a Share Savings Account. This also acts as your ‘share’ in the member-owned credit union. You can see Community Wide Federal Credit Union’s full list of partner organizations here.

#3 Spectrum Credit Union – 0.60% APY

Spectrum Credit Union merged with Chevron Credit Union back in 2012, but still operates under its own brand. They have 100,000 members mostly in the Bay Area, but like Community Wide FCU, they open their arms to anyone who joins one of their partner organizations (found here).

#4 Navy Federal Credit Union – 0.50% APY

Navy Federal Credit Union needs little introduction being the largest credit union in the country by both members and assets with 9.4 million members and $130 billion in assets.

Despite NFCU’s vast size, they do not provide membership to anyone. They used to provide backdoor membership by joining one of several partner organizations, but this changed sometime in 2017 according to this online report.

That said, service members in all branches of the armed forces, along with their family and household members are eligible. You may apply online here or you can give them a call at 1-888-842-6328 or visit a local branch. Locate a branch near you.

#5 TAB Bank – 0.50% APY

TAB Bank stands for Transportation Alliance Bank and is known as the bank tailored for truckers. They got their start in 1988 in Odgen, Utah and entrenched themselves with truckers by starting out as a banking service that operated within the truck stops.

Today, they offer their high yield, FDIC-insured online deposit products to people nationwide. Outside of their 6 month CD on our list, they also have a variable rate, online savings account with an APY that’s often found at the front of the pack for online savings accounts.

#6 First Internet Bank – 0.45% APY

First Internet Bank has been selling online CDs since dial-up modems and AOL accounts.

As their name implies, they quite literally were the first, one-hundred percent online bank complete with FDIC insurance. They were founded in 1997 by David Pecker and opened their digital doors to customers on February 22, 1999.

Today, their CDs remain competitive for each term they offer up to 60 months. Their CDs can be opened both online or over the phone at 1-888-873-3424.

#7 Georgia’s Own Credit Union – 0.40% APY

Georgia’s Own Credit Union is a member-owned, not-for-profit, full-service financial institution.

Getting their start back in 1934 with just $160 they’ve since grown to be the 3rd largest credit union in the state of Georgia by both members and total assets. Today they serve more than 200,000 members and control just shy of $3 billion in assets.

Unfortunately, for many, this credit union is restricted to residents of Georgia. To see their complete eligibility checklist, visit their membership page.

#8 Bethpage Federal Credit Union – 0.40% APY

Bethpage is a small credit union based out of Bethpage, New York on Long Island (locate branches here) that has been serving members since 1941.

Despite their seemingly regional presence they actually open their membership to anyone willing to deposit $5 into a share savings account. This also serves as your ownership ‘share’ in the credit union. You can open a share account and learn more here.

Bethpage FCU also has a noteworthy youth savings account which provides a lucrative APY of 2.0% on the first $1,000, followed by a still respectable 0.35% on balances above $1,000.

#9 Patelco Credit Union – 0.35% APY

Unlike the other institutions on our list, Patelco offers its CD terms in ranges. For short term CDs, they have ranges of:

  • 3 – 5 months
  • 6 – 11 months

Their 3 – 5 month CDs come with an APY of just 0.20% while the 6 – 11 month term features the APY of 0.35%.

Although Patelco’s branches are limited to the Bay Area of California, they serve members in all 50 states. Like Bethpage, to join Patelco you must simply open a share account (minimum of just $1.00) which also functions as your stake in the institution. You can learn more and join using this link.

#10 PenFed Credit Union – 0.30% APY

Unlike Navy Federal Credit Union, PenFed opens its doors to anyone in the country willing to deposit $5 into a share account. You used to have to donate to a charity of their choosing for membership if you weren’t eligible through the standard paths, but that is not the case anymore.

You can complete a membership application online here or give them a call at 800-247-5626 and complete it over the phone.

On top of their solid 6 month CD, PenFed also has a variable rate online savings account that earns an exceptional APY of 0.55%. You can read more about this offering here.

#11 Sallie Mae – 0.30% APY

Sallie Mae originally came on the scene in 1973 to service federal education loans. They became private and offered private student loans while still operating under contract to service federal loans.

An overview of their history and controversies can be found here, but needless to say, their product line has evolved quite drastically since inception.

Along with their competitive 6 month CD, Sallie Mae also has an extremely competitive, variable rate savings product called SmartyPig. This account pays up to 0.80% APY on balances of $10,000 or less.

Who Should Open a 6 Month CD

In general, CDs (certificates of deposit) are good products for people looking for a fixed-rate of return for a specified period of time – 6 months.

They are considered short-term deposit products, along with 3 month and 9 month CDs, and are ideal for those who can keep funds untouched for the entire duration. If you are unsure whether or not you can keep your funds tied up for that long, you may want to consider a 3 month CD or a variable-rate savings account or money market account. Savings and money market accounts do not feature fixed rates though and are subject to change at any time without notice to the account holder.

CDs are also good options for people who are saving for something particular and do not want to have access to the funds they’ve set aside.

A 6 month CD, specifically, can be a good savings vehicle for those looking to save up for a vacation, a wedding ring, a downpayment to a car, etc. If you’re looking to save for something larger like a downpayment to a house you may want to consider a longer term CD with a higher rate.

CDs come with early withdrawal fees that can greatly reduce your earnings and even your principal in some cases. This can work as a great hindrance for those tempted to reach into their deposit prior to maturity.

6 Month CD – Bank or Credit Union

Deciding on whether to open a 6 month CD at a bank or credit union is going to rely on several factors other than simply who has the highest rate.

Credit Unions are not-for-profit, member-owned institutions that generally pass along profits back to its members in the form of lower loan rates and better savings rates. That is why you’ll generally see better APYs with credit unions than you would with brick and mortar banks – and especially the big banks (Bank of America, Citibank, Chase, etc).

However, given that credit unions are smaller, member-owned institutions and are not purely profit driven with aggressive growth goals, they tend to be more exclusive with membership than your average big bank. Some provide loopholes through membership in partner organizations, but you’ll need to check with each credit union individually for specific eligibility requirements.

Online banks may be a good option if your desired credit union is out of reach. They can compete on APY as well as they have little overhead compared to their brick and mortar counterparts. The operational savings found in their online business model can be used to entice new customers in the form of lower loan rates and better savings rates.

Alternatives to 6 month CDs

If you’re turned off by the current interest rate environment for short term CDs, you have some alternatives to consider.

For those relying on the safety of FDIC coverage, you might want to explore cash management accounts.

These accounts are hybrid accounts that usually provide a combination of checking, savings, and investment services. They are tech companies at their core, but rely on the FDIC insurance of their partner bank(s). At the end of each day funds are swept into partner banks to leverage their FDIC-insurance. You can generally exceed the $250,000 FDIC limit as well by having funds swept into multiple institutions at day’s end.

A good cash management account comes with no fees and features high APYs. Currently the most popular options hover between 0.30% and 0.40% APY. The Aspiration Spend & Save account still features an APY of 1.00%.

Another option that provides FDIC insurance are rewards checking accounts. These accounts usually provide cash back on spending or very generous yields on savings. Many accounts pay well over 1.00% APY on balances, but there is generally a catch.

Most of the accounts require a certain number of debit card transactions from the account each month (typically 10) as well as a direct deposit set up. On top of that, in most cases you can only earn the exceptional APY up to a certain balance amount. Capping balances from $5,000 to $10,000 is typical but some go higher.

Failing to meet either the required number of debit card transactions OR the monthly direct deposit will result in either no interest paid, or worse, a hefty fee. Check with the institution directly to see what the exact monthly requirements are.

If you’re open to taking on more risk, we’ve also compiled a list of alternatives to CDs and savings here that feature a dozen different options.

Suncoast Credit Union CD Rates – Up to 0.95% APY!


image credit: suncoastcreditunion.com

Suncoast​ is the largest credit union in Florida and the tenth largest credit union in the U.S. by asset size.

Founded in 1934 as the Hillsborough County Teachers Credit Union by a small group of teachers, Suncoast got its start serving only school employees. For many years, it was a federal institution called the Suncoast Schools Federal Credit Union and only transitioned back to a state credit union, assuming the name it has now, in 2013.

Today and since 2013, membership is not career-dependent. Suncoast serves 884,024 educators and non-educators alike across Florida. However, Suncoast membership isn’t open to everyone.

To be eligible to join, you have to live in Florida yourself, be a graduate of Florida College, or be related to someone that’s already a member.

Suncoast Credit Union CD rates are currently providing yields that are much higher than the national average for each respective term. They were recently featured in our December 2020 report of the best CD rates in Florida.

Suncoast Credit Union CD Rates + Details

Suncoast deposits and savings are federally insured by the NCUA (FDIC equivalent for credit unions) up to $250,000. A traditional share certificate requires a minimum opening deposit and average daily balance of only $500.

Suncoast Credit Union CD Rates

CD TermAPY
6 month0.30%
12 month0.40%
18 month0.45%
24 month0.55%
36 month0.70%
48 month0.85%
60 month0.95%

To put these yields above in perspective, the current national average for a 12 month CD and a 60 month CD sit at just 0.16% APY and 0.33% APY according to FDIC data.

An early withdrawal fee of 90 days interest is charged if you withdraw funds from CDs with terms of 12 months or less and 180 days interest is charged for early withdrawals on terms 12 months or more.

Dividends for these accounts are compounded daily and credited monthly. You can choose to have your interest credited back into the CD or deposited into another account – either external or internal to Suncoast – without incurring any fee.

Jumbo certificates of $100,000 or more are also sold through Suncoast Credit Union. In normal market conditions, these products earn higher fixed rates than regular share certificates with lower balances, however, Suncoast and many other institutions have their yields much more inline with standard CDs at the moment.

Suncoast Credit Union Jumbo CD Rates

CD TermAPY
6 month0.30%
12 month0.40%
18 month0.45%
24 month0.55%
36 month0.70%
48 month0.85%
60 month0.95%

In addition to their standard CDs and jumbo CDs, Suncoast Credit Union also offers a ​Smart Start certificate account​.

The 12 month Smart Start certificate allows you to make deposits on a schedule rather than up front. It can be opened with just $50 and comes with an APY of 0.50%. After your initial deposit, you’ll need to schedule automatic payments of at least $40 per month from your payroll or another account. All of the restrictions and fees listed above for regular share certificates apply for Smart Start certificates.

To open a Suncoast CD, visit a branch, send an email through online banking, or contact the Member Care Center​ at ​813-621-7511 or 800-999-5887.

Suncoast Credit Union Money Market Rates + Account Details

Suncoast Credit Union’s current money market rates are much less competitive than their CDs. And although the national average for money market accounts sits at around 0.11% APY, better rates with more flexible balance requirements can be found online.

Suncoast Credit Union Money Market Rates

BalanceAPY
$0 – $999.990.50%
$1,000 – $24,999.990.20%
$25,000 – $49,999.990.25%
$50,000 – $99,999.990.30%
$100,000 – 149,999.990.35%
$250,000+0.40%

Dividends are compounded daily and paid monthly. Your balance can drop below $1,000 without incurring any fees, but you’ll stop earning interest as soon as that happens. You can easily access your money online or through the mobile app, but you’re allowed only six transactions per month, which is required by law per regulation D. If you need to make more than six transactions you’ll want to stop by a branch and check with someone in person.

Other Savings Accounts Offered by Suncoast Credit Union

A regular share membership is the savings account that you open when you first become a Suncoast member. This account comes with an APY of just 0.15%. We wouldn’t recommend using it to grow your savings given the paltry APY but it is required to be a member. Currently, it requires an opening deposit and average daily minimum balance of just $5 to stay open and maintain membership with the credit union.

There are also the student savings, health savings, and special share savings accounts. A special share savings is just a savings account you can have in addition to your regular share membership savings account and it earns the same rate. The only difference is that it does not require a minimum balance because it does not count as your share in Suncoast Credit Union.

A student or youth savings account is simply a certificate account that earns the same tiered rates as the standard Suncoast CDs but requires a minimum opening balance of only $500 – making it more manageable for students.

About Suncoast Credit Union + Eligibility

Suncoast has exactly 895,000 members as of mid 2020 and this figure has been growing steadily each year. The composition of Suncoast Credit Union’s Financial statements are as follows:

Deposits: $9,832,734,549

Loans: $8,566,015,257

Assets: $11,100,632341

Suncoast Credit Union is headquartered in Tampa, Florida and serves communities across the state. There are ​68 branch locations​ in 40 Florida cities and hundreds of Suncoast branded ATMs. Though it is a state credit union and does not participate in co-op shared branching with other institutions, Suncoast ​does​ have over 30,000 ATMs with other credit unions across the nation. Use the Suncoast site to find a branch location, Suncoast (surcharge-free) ATM, or co-op ATM near you.

Suncoast membership is, of course, residency or geography based. However, you don’t necessarily have to be a current Florida resident to be eligible to join. To qualify for membership, you must:

  1. Have an immediate family member that is a Suncoast member
  2. Live in a qualifying county (see below)
  3. Be a graduate of ​Florida College

Qualifying Florida counties​ include:

  • Alachua
  • Brevard
  • Broward
  • Charlotte
  • Citrus
  • Clay
  • Collier
  • Desoto
  • Dixie
  • Duval
  • Gilchrist
  • Glades
  • Hardee
  • Hendry
  • Hernando
  • Highlands
  • Hillsborough
  • Indian River
  • Lake
  • Lee
  • Leon
  • Levy
  • Manatee
  • Marion
  • Martin
  • Miami-Dade
  • Monroe
  • Orange
  • Osceola
  • Palm Beach
  • Pasco
  • Pinellas
  • Polk
  • Sarasota
  • Seminole
  • St. Johns
  • St. Lucie
  • Sumter
  • Volusia

Final Thoughts

Suncoast Credit Union may be the tenth largest credit union in the nation, but it’s not a national credit union and there’s no way around its limited eligibility policies. This is important to keep in mind, as only those in Florida or otherwise tied to the state will have access to in-person branches or membership in general.

The APYs on Suncoast Credit Union’s savings products are competitive when benchmarked against the current national averages for each respective term, however more competitive variable rate accounts can be found through online banks and other credit unions with nationwide acceptance offer slightly higher CD rates.

OneWest Bank CD Rates: Up to 0.45% APY + 0.20% Money Market Account


The OneWest Bank deposit account suite. Available online. FDIC insured.

OneWest Bank is an offshoot of CIT Bank that was founded in 2009 in Southern California.

A hodgepodge of private equity investors led by Steve Mnuchin established OneWest Bank through a holding company they bought into called IMB Holdco.

Today, OneWest Bank has headquarters in Pasadena, California and has 70+ locations throughout the southern portion of the state.

They offer a full range of deposit accounts, IRAs and loan products, but many of their products are limited to residents in Southern California.

The following FDIC-insured deposit accounts can be opened online by consumers anywhere in the country:

  • CDs (certificates of deposit)
  • Personal Savings account
  • Green Savings account (a high yield online savings account)
  • Premium Money Market account

For the purpose of this review, we will focus on OneWest Bank’s fixed and variable rate savings products listed above that are available online and nationwide.

OneWest Bank CD Rates + Account Details

OneWest Bank currently offers ten CDs with terms ranging from 3 month to 5 years. All CDs are federally insured by the FDIC up to the applicable limits and come with a minimum deposit requirement of $1,000.

OneWest Bank CD Rates

CD TermAPY
3 months0.10%
6 months0.10%
9 months0.15%
12 months0.25%
13 months0.30%
18 months0.30%
2 years0.35%
3 years0.40%
4 years0.40%
5 years0.45%

To give the yields above some context, the current national average on a 12 month CD and a 60 month CD sit at just 0.16% APY and 0.33% APY, respectively according to FDIC data.

We should note that CD rates at OneWest Bank may differ than those at CIT Bank.

Also, the $250,000 in FDIC coverage spans deposits in both banks. Therefore if you hold a CD at CIT Bank with $100,000 in the account, you would only be provided $150,000 in FDIC coverage for deposits at OneWest Bank.

Interest compounds daily on all OneWest Bank CDs and is credited either monthly, quarterly or at maturity depending on the term of your CD.

Early Withdrawal Fees and Grace Period

OneWest Bank allows for a grace period of 7 days upon the maturity of your CD in which you may add or withdraw funds penalty free. This is a slightly tighter deadline than most banks and credit unions offer which is a 10 day grace period.

OneWest Bank will send out grace period notifications prior to your CD maturing, however, we would recommend setting up your own notifications as well if you plan on moving funds about. If nothing is done during the 7 day grace period the CD will renew with the same terms and the going APY.

If you need access to funds prior to the maturity of your CD, OneWest Bank will impose an early withdrawal fee.

OneWest Bank Early Withdrawal Fees

CD TermFee
90 days – 1 year90 days’ simple interest
1 year – 18 months180 days’ simple interest
2 years270 days’ simple interest
More than 2 years2% of amount withdrawn

These early withdrawal fees are less stringent than some we’ve seen lately that have the potential to eat into your principal.

Personal Savings Account APY + Details

OneWest offers a personal savings account that can be opened by anyone in the country either online or over the phone (or in a SoCal branch).

It comes with a minimum deposit requirement of just $100, but imposes a $3 monthly service fee if you average daily balance dips below $1,000. Anyone over the age of 55 or minors under the age of 18 are exempt from this fee. You must also elect to receive e-statements.

Rates are paid in tiers based on your average daily balance during the month. Currently all tiers other than the $100k + tier pay the same rate and APY. Rates on the personal savings account are variable and subject to change at any time.

OneWest Bank Personal Savings Account Rates

BalanceFeeAPY
$100 – $999.99$3/mo0.05%
$1k – $4,999$00.05%
$5k to $9,999$00.05%
$10k – $24,999$00.05%
$25k – $49,999$00.05%
$50k – $99,999$00.05%
$100k +$00.10%
$10m +$00.05%

To put the yields above in perspective the average APY on a savings account sits at just 0.05% according to the FDIC.

Features of OneWest Bank Personal Savings Account:

The personal savings account comes with some OK perks but nothing really out of the ordinary for a modern day online savings account.

The main perks are:

  • 24/7 access to online banking and an automated telephone system. They also have apps available for download on IOS phones and Android devices.
  • Check writing capabilities
  • ATM card and free access to OneWest ATMs
  • Online funds transfers

Green Savings Account Rates + Details

The OneWest Bank Green Savings account is similar to the Personal Savings account in many ways but with a few key differences.

The big ones being that this account comes with ZERO monthly fees but also ZERO check writing capabilities and no ATM card.

It can also be opened online or in a local branch whereas the Personal Savings account can also be opened over the phone.

The rates are nearly identical at the moment except at the $50k and $100k marks and also pay interest on tiers.

OneWest Bank Green Savings Account Rates

BalanceFeeAPY
$100 – $999.99$00.05%
$1k – $4,999$00.05%
$5k to $9,999$00.05%
$10k – $24,999$00.05%
$25k – $49,999$00.05%
$50k – $99,999$00.10%
$100k +$00.15%
$10m +$00.05%

This account also requires a minimum deposit of $100 to open.

We should also note that all variable rate online savings accounts and money market accounts offered by OneWest Bank come with the limitation of just 6 transfers per month per federal regulation D.

Premium Money Market Account Rates + Details

The last of the variable rate products offered by OneWest Bank which can also be opened online throughout the country is their “Premium Money Market” account.

This account’s features are identical to the Personal Savings account but it comes with a steeper minimum daily balance requirement (of $10,000) to avoid a steeper fee of $10.

It comes with the same ATM card, online transfer and check writing capabilities.

The rates are also paid on tiers.

OneWest Bank Premium Money Market Account Rates

BalanceFeeAPY
$100 – $999.99$100.05%
$1k – $4,999$100.05%
$5k to $9,999$100.05%
$10k – $24,999$00.05%
$25k – $49,999$00.05%
$50k – $99,999$00.10%
$100k +$00.20%
$10m +$00.05%

This account also requires a minimum deposit of just $100 to open, but remember you will be on the hook for a $10/month fee if you do not maintain an average daily balance of $10,000 or more.

Final Thoughts

While OneWest Bank has offered more lucrative savings rates on both variable rate accounts and fixed rate certificates of deposit in the past, their current yields barely keep up with the national average(s) for each respective term.

On top of that, you’re on the hook for monthly fees with most of their variable rate savings accounts unless you can meet certain requirements.

We would suggest considering a credit union with nationwide acceptance or even an online bank if you’re after high rates and no fees.

Apple Bank CD Rates – 9 month CD 0.50% APY!


Apple Bank serves the New York Metropolitan area, but has a storied history being founded in 1863 in Harlem in the aftermath of the Civil War.

Harlem was a primarily Dutch suburban village, not yet a part of New York City and the country was undergoing fundamental change. One element of this change was through financial reforms that brought about the formation of many regional banks.

Apple Bank was one of the few banking institutions that stood the test of time through the depression era, the 2008 financial collapse and up to present day.

Today, their coverage still remains in New York City and you must visit a local branch and speak with a banker to open one of their deposit products.

If you can manage that, you’ll find the APY (annual percentage yields) provided on some of their CDs are fairly competitive when compared to the national average(s).

For a full review of Apple Bank’s certificate of deposit suite, continue reading below.

Apple Bank CD Rates + Account Details

Apple Bank currently offers CDs with six terms ranging from 6 months to 3 years. Apple Bank is member FDIC and consumer deposits are federally insured up to the applicable limits. They also offer CDARS (certificate of deposit account registry service) which can offer FDIC insurance into the millions of dollars [learn more here]. We should note though that these accounts simply leverage the FDIC insurance of other institutions. Therefore they may come with different terms and conditions than what Apple Bank provides. You can speak with your Apple Bank representative for more information on how these products work and which banks they’ve partnered with.

Standard FDIC insurance covers consumer deposits up to $250,000 and $500,000 on joint accounts.

All Apple Bank CDs come with a minimum deposit requirement of $1,000.

Apple Bank CD Rates

CD TermAPY
6 months0.25%
9 months0.50%
1 year0.50%
18 months0.50%
2 years0.50%
3 years0.50%

To put the offers above in perspective, the current national average on a 12 month CD and a 3 year CD sit at just 0.16% and 0.25% APY, respectively according to FDIC data.

Their 9 month CD currently stands out as the most competitive offer, providing the highest yield with the shortest term.

Interest Payments

All Apple Bank CDs feature daily compounding interest for maximum growth.

An old school feature with Apple Bank is that they pay your interest by mail either monthly, quarterly or at maturity once your interest has reached $10 or more.

If you also have an Apple Bank checking account, money market account or savings account you can have it directly deposited, otherwise it’s paid via check.

Early Withdrawal Penalties & Grace Period

If there’s a chance you may need some of your funds prior to the maturity of your CD, you may want to shop around for other banks or credit unions or go with a variable rate savings product that allows for fee-free withdrawals. CDs are designed to provide a fixed rate for a fixed period of time.

If you do need access to your funds prior to maturity, here is what you will pay with Apple Bank.

Apple Bank Early Withdrawal Penalties

CD TermPenalty
1 year or less$50 + 1% of amount withdrawn
1 year or more$50 + 3% of amount withdrawn

Many banks and credit unions have early withdrawal penalties on their CDs, however, Apple Bank’s are quite aggressive. Fees usually chip away at interest earnings, but don’t always eat into the principal quite like Apple Bank’s fee structure could.

If you’re intending to open an IRA CD however, you may be able to avoid some or all of an early withdrawal fee depending on your individual circumstance.

For example, if you turn 70.5 years of age this calendar year, you’re allowed to withdraw up to 20% of the principal from an IRA CD penalty-free. You’ll want to reach out to a certified advisor or tax professional to understand the tax implications.

Grace Period

Apple Bank also has a limited grace period when compared to other banks and credit unions.

The grace period is the time after your CD matures in which you can add or withdraw funds without incurring any fees.

Most banks have a grace period of 10 days. Apple Bank, however, has a grace period of just 5 days.

If nothing is done during this time, Apple Bank will renew your CD with the same terms at the going APY.

They will send you a notice of your grace period prior to its start, but we would recommend setting your own notifications as well if you intend to withdraw or add funds after your CD matures.

Final Thoughts

Apple Bank has some competitive short term, fixed rate CDs.

Their 9 month product stands out as the best, but all terms beat the national average by a respectable margin.

That said, if you live outside the greater New York City area it may be difficult to open one of these accounts. We would recommend finding a nationally available credit union or an online bank if you’re after a competitive APY.

Pawtucket Credit Union CD Rates – Still up to 0.70% APY


[Update January 2021: Pawtucket’s Credit Union’s CD rates remain the same to start the new year. The only APY change that has occurred within their deposit suite since May of last year has been their promotional 15 month “Easy Access” CD which lowered from 0.55% APY to 0.50% APY.]

[Update May 2020: Pawtucket lowered the APY on their standard CDs, IRA CDs and promotional deposits.]

[Update April 2020: Pawtucket lowered the APYs on their 6 month and 18 month CDs for both standard deposits and IRA CDs.]

Pawtucket Credit Union, based out of Pawtucket, Rhode Island, has consistently provided savers with above average rates over the years despite an unfavorable landscape for savers in general.

Up until February of 2020 they had one of the highest yielding 6 month CD rates in Rhode Island. However, given the FED’s recent rate drop to near zero, the annual percentage yields have come down some, but still offer respectable APYs.

Below you’ll find Pawtucket Credit Union’s CD rates and any available promotional CD offers.

If you live in Rhode Island or have family members who do that can assist you in getting membership, then you may want to consider one of Pawtucket’s deposit products.

Who Is Eligible To Join Pawtucket Credit Union

Although Pawtucket Credit Union doesn’t make it clear on their website who is eligible for membership we called them and confirmed that you would have to be a resident of the state – OR – have family in the state that could co-sign an account for you.

DepositAccounts states that they also accept a few neighboring counties in Massachusetts and Connecticut although we weren’t able to confirm that over the phone.

About Pawtucket Credit Union

Founded in 1926 Pawtucket Credit Union is the largest credit union in the state of Rhode Island with more than 110,000 members and assets exceeding $2.1 billion.

What’s also noteworthy is that they’ve seen incredible deposit growth despite a sluggish savings rate environment. Pawtucket Credit Union now has more than $110m in non-brokered deposits under their roof with an annual growth rate of more than 7% despite falling rates nationwide.

Pawtucket Credit Union’s CD Rates

Pawtucket Credit Union has certificates of deposit that can be opened online and certificates of deposit that can be opened by visiting one of their 15 branch locations.

When browsing Pawtucket Credit Union’s deposit rate page look for the little blue button titled “Open Now” to see whether or not it can be opened online. If there is no blue button, then you must go into a branch.

You’ll see the button next to the product name if it can be opened online. See below.

Below are all of Pawtucket Credit Union’s standard certificates of deposit and their APY. All of these standard CDs come with a minimum deposit requirement of $1,000.

CD TermAnnual Percentage Yield (APY)
3 month*0.40%
6 month*0.60%
9 month*0.40%
12 month0.40%
18 month0.55%
24 month0.60%
36 month0.70%
48 month0.70%
60 month0.70%

*Their 3 month, 6 month and 9 month CDs calculate interest using simple interest, the rest are compounded daily.

Below are Pawtucket Credit Union’s IRA CDs and APY. They currently provide the same yield as their standard CD counterparts, however, they come with a lower minimum deposit requirement of $500 and, unfortunately, none of them can be opened online.

IRA CD TermAnnual Percentage Yield (APY)
3 month*0.40%
6 month*0.60%
9 month*0.40%
12 month0.40%
18 month0.55%
24 month0.60%
36 month0.70%
48 month0.70%
60 month0.70%

*Their 3 month, 6 month and 9 month IRA CDs calculate interest using simple interest, the rest are compounded daily.

15 month Easy Access CD

Pawtucket Credit Union is running a CD promotion with a 15 month term called their “15 month Easy Access CD.” This product has a minimum deposit requirement of $5,000 and comes with an APY of 0.50%.

Here’s what you’ll get with the 15 month easy access CD:

  • Two penalty-free withdrawals allowed during the 15 month term.

To avoid penalty, withdrawals must be more than 6 days after account opening, and more than 6 days following each partial withdrawal; otherwise, penalty as described below for early withdrawal. Offer not applicable for retirement accounts.

You’ll also want to note, that like the 3 month, 6 month and 9 month standard CDs and IRA CDs, this 15 month easy access CD also uses simple interest rather than compounding your interest daily.

Final Thoughts

If you live in Rhode Island and are in the market for a solid APY on an FDIC-insured or NCUA-insured savings product, then keep your eye on Pawtucket Credit Union’s CDs.

Although their rates were lowered with the latest FED move, they regularly keep their APYs above the national average on many of their standard certificates of deposit products and regularly offer promotional CD’s with generous rates as well.

CDs vs Annuities – Which Are Best For You in 2021?


The current interest rate environment has left those who rely on the interest from FDIC-insured deposit accounts for income, out in the cold.

With the FED keeping rates near zero for the foreseeable future, banks have little need to compete for your deposits by offering enticing rates.

Many savers are thus searching for alternatives. If you find yourself doing the same, perhaps the idea of purchasing annuities has popped up as a viable option.

If you’re considering annuities in 2021 and weighing them against CDs and savings accounts, then you may find our guide below useful.

What is an Annuity?

An annuity is an investment that will pay an income stream to an individual over time. The seller of the annuity invests the funds received, and distributes a stream of payments to the buyer over a period of years.

There are two important phases that impact the stream of payments. During the accumulation phase, dollars are invested into the annuity. To start payments, the investor must annuitize the annuity contract, which is called the annuitization phase.

Investor Choices

Annuities offer a number of options:

  • Funding: The investor can accumulate funds in the annuity with a lump-sum payment, or using a series of periodic payments.
  • Guaranteed income: An annuity can offer an income stream that is guaranteed for the annuitant’s life, or payments over a fixed period. Annuity payouts can also be based on a spouse’s life.
  • Immediate payment annuity: You can invest a lump sum, and start receiving payments immediately.
  • Investment options: Variable annuities give investors the option of using stocks, bonds, and other securities within the annuity contract.

An annuity can be compared to a defined benefit pension plan, or your Social Security payments. In both instances, the investor receives a stream of payments over the annuitant’s remaining life.

Factors That Impact Your Annuity

To understand what annuity is, think about a bucket. Dollars go into the bucket to fund the annuity during the accumulation period. When you annuitize the contract, imagine cutting a hole in the bottom of the bucket, and taking dollars out.

The payments include both your original investment, and possibly earnings generated by the annuity while your money was in the bucket. 

Annuities may be fixed or variable.

Fixed Annuities

As the name implies, this annuity is an insurance contract that guarantees a fixed rate of interest on the dollars you invest. In other words, the dollars in the bucket earn a fixed rate of interest.

Compounding Earnings and Tax Deferral

Your interest earnings are tax-deferred, meaning that you don’t pay taxes on the earnings until you annuitize and start withdrawing funds. By leaving dollars invested in the annuity, you compound your earnings on a tax-deferred basis.

Assume that you invest $10,000 in a fixed annuity that pays 3% interest a year. Your $300 in interest for year one is reinvested into the annuity. At the start of year two, you have $10,300 invested, and you earn 3% in year two. The total amount invested is larger, and you earn ($10,300 X 3%), or $309 in year two.

Compounding allows you to earn “interest on interest”, and your earnings increase at a higher rate. You earn $309 in year two, instead of $300. Earnings for two years total $609.

If you had to pay taxes each year, your total earnings would be much lower.

In this case, assume that you had to pay a 25% tax rate on your fixed annuity earnings in years one and two. Your after-tax earnings in year one total $225. If you started year two with $10,225, earned 3%, and paid a 25% tax on the earnings, your earnings in year two total $230. Earnings for two years total $455.

If you buy a fixed annuity while working, you may be in a lower tax bracket when you retire and take funds out at a future date. When you retire, your annual income may be lower, and so will your tax rate. If your tax bracket lowers from 25% to 20%, you’ll pay less in taxes when you start withdrawing funds in retirement.

Compounding earnings and tax deferral are huge benefits for an investor.

Managing Fixed Annuity Assets

Insurance companies invest fixed annuity funds into corporate bonds and government bonds. The money manager must consider the guaranteed rate of interest that the annuity must pay, and the earnings on the bond portfolio.

You may have the option of leaving your dollars invested in the annuity once the guaranteed period expires. The annuity seller may change the interest rate on the annuity, and offer you a guaranteed minimum interest rate.

Consider this scenario: The guarantee interest period on your fixed annuity is ending. Your fixed rate was 4%, but interest rates have fallen since you purchased the annuity contract. The annuity company offers a current rate of 3%, with a guaranteed minimum interest rate of 2%. The new terms may- or may not- be attractive to you.

Credit Rating For Insurance Companies

Your annuity payments depend on the credit rating of the insurance company that sells the annuity.

Insurance companies are rated by independent credit rating firms, which include Moody’s and Standard and Poor’s. These firms consider each insurance company’s assets, liabilities, and the investment performance of their portfolios.

Before you buy an annuity, ask your investment representative about the insurance company’s credit rating.

Other Fixed Annuity Considerations

Your checking account is a liquid investment, because you can withdraw funds at little or no cost to you. Annuities are defined as illiquid investments.

As explained above, a fixed annuity is an attractive investment for people who are willing to keep dollars invested for a specific period of time. If you have to withdraw funds due to a financial emergency, you may incur costs.

  • Withdrawal limits: A fixed annuity limits the number of withdrawals you can make in a year, and the amount you take out. It’s typical for an annuity to allow only one withdrawal per year, and the amount must be 10% or less of the account value.
  • Surrender period: Your annuity will have a surrender period. If you withdraw more than the annuity allows, you’ll pay a surrender charge on the excess withdrawal.
  • Tax impact: Annuities are designed to fund retirement, which is why these products offer tax deferral on annuity earnings. If you make any withdrawal and your age is under 59 ½, you’ll pay a 10% tax penalty. The dollars you withdraw are taxed as ordinary income, at your current tax rate.

Annuities are expensive to create and manage. The insurance company must manage the insurance component of the product and the investment portfolio used to generate earnings. To cover these costs, annuity may charge higher fees than other forms of investing.

While a fixed annuity offers a number of benefits, you need to consider the costs. Also, if you need emergency access to the funds you plan to invest, a fixed annuity is not a suitable investment.

Indexed Annuities

An indexed annuity pays a rate of return based on an equity (stock) index. An index is a portfolio of stocks that is used to track market performance, or used as an investment vehicle. The Standard and Poor’s 500, for example, is an index of 500 well-known company stocks.

In some cases, the indexed annuity will pay a guaranteed minimum interest rate.

The best way to understand an indexed annuity is to review the features of a variable annuity.

Variable Annuities

A variable annuity’s value depends on the performance of the annuity’s portfolio of stocks and bond investments. Variable annuities do not offer a guaranteed rate of return. In some cases, you may earn a minimum rate of return, but the level of return will vary.

When you invest in a variable annuity, you choose from a variety of mutual funds investments. The mutual funds may invest in stocks, bonds, and other securities. If you own mutual funds in a retirement plan, you know that the risk and reward of funds can vary greatly.

Stock Mutual Funds

A stock fund investor can earn a return in several ways. A company may pay a cash dividend to shareholders, which is a share of the firm’s earnings. Stock investors also benefit if the stock price increases and the portfolio manager sells shares for a gain.

Stock funds are defined, based on the size of the companies in the fund. Company size is determined by capitalization, or the total market value of stock held by the public.

The Balance reports that US large capital, or “large cap” funds have an average 15-year return of 8.22%. Mid cap funds averaged an 8.09% return for the same period, and small cap funds earned 7.93%.

In addition to the rate of return, you need to consider the volatility of the stock mutual fund from year to year. A good tool to measure the volatility of the overall stock market is the Standard and Poor’s (S&P) 500 index. 

As this chart indicates, the performance of the index can vary greatly over time. During the last 20 years, you’ll note annual increases- and decreases- of over 20%. Investors should carefully consider the risks and potential returns of stock investing.

You may choose a variable annuity contract with a guaranteed death benefit amount. This option protects the value of your account, so that your heirs can receive a minimum amount when you pass away.

Bond Mutual Funds

Bond funds may invest in municipal bonds (issued by states and cities), government bonds (issued by the federal government), and corporate debt.

Bond funds are segregated, based on the average length of maturity of the bonds in the portfolio. Bonds may have maturity dates from a few years to as long as 30 years. A bond with a longer maturity date pays a higher amount of annual interest.

The average 15-year return on a long-term bond fund is 6.38%. An intermediate bond fund averaged 3.82%, and a short-term bond fund averaged 2.6%.

Bond funds, on average, have less volatility than stock funds. A bond fund invests in securities that pay a fixed interest rate, and mature on a specific date. If the portfolio manager buys a $30,000, 5% bond and holds it until maturity, the fund will earn 5% in interest per year, and receive the original $30,000 investment at maturity.

Bond investing offers the investor a more stable rate of return and less volatility. The bonds in the portfolio have a market value, but if the bond is held to maturity, the fund earns the interest and receives the return of principal.

Other Variable Annuity Considerations

You have more options when you invest in a variable annuity, rather than a fixed annuity.

  • Funding: You can fund a variable annuity by investing a lump sum, or by making a series of payments over time.
  • Accumulation period: Once you choose your mutual fund investments, your annuity dollars can stay invested indefinitely.
  • Annuitization: If you choose to annuitize the contract, the annuity will start paying you, based on the value of your account and the type of payment plan you choose.

Variable annuities have restrictions that are similar to fixed annuities:

  • Withdrawal limits: The annuity limits the number of withdrawals you can make in a year, and the amount you take out. 
  • Surrender period: Your annuity will have a surrender period. If you withdraw more than the annuity allows, you’ll pay a surrender charge on the excess withdrawal.
  • Tax impact: Annuities are designed to fund retirement, which is why these products offer tax deferral on annuity earnings. If you make any withdrawal and your age is under 59 ½, you’ll pay a 10% tax penalty. The dollars you withdraw are taxed as ordinary income, at your current tax rate.

Variable annuities are more expensive to manage, when compared with fixed annuities. A variable annuity is an insurance contract, and must be registered as a security with the Securities and Exchange Commission (SEC).

To cover the regulatory and management costs, variable annuity may charge a high level of fees.

What is a Bank CD?

Banks and credit unions issue certificates of deposit (CDs). CDs pay a higher rate of interest than savings and checking accounts, and the buyer is expected to leave the dollars invested for a specific period of time.

Bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC), which means that dollars invested in CDs are federally insured against loss. Buyers will pay penalties for early withdrawal, however.

Before you purchase a CD, you should understand the current interest rate environment.

Current CD Rates and the Interest Rate Environment

Interest rates have steadily declined since 1981. The interest rate on a 30-year fixed mortgage has declined from over 18% in September of ’81 to under 3.5% today.

The Federal Reserve (Fed) has committed to near zero rates for the indefinite future, due to ongoing economic concerns regarding the coronavirus outbreak. Interest rates were already low before the outbreak started back in March of last year. Low rates of inflation allow the Fed to keep interest rates lower for a longer period of time.

Low interest rates also mean low rates of return on certificates of deposits (CDs) and savings account balances. A 5-year certificate of deposit pays less than 3% at most banks, and shorter-term CDs pay even lower rates. Savings accounts currently pay less than 2%.

Low rates of return may impact your monthly income, and your ability to grow your investment portfolio. If you’re interested in earning higher returns, consider annuity investments as an alternative to investing in bank CDs and savings accounts.

Major Differences Between CDs and Annuities

CDs are a low cost and highly secure investment for people who can commit funds for one to five years. Annuities offer higher rates of return, tax-deferral, and variable annuities can provide a diversified portfolio of stocks and bonds.

Annuities are more expensive than CDs, however, and the penalties for early withdrawal are greater in an annuity. Finally, variable annuities expose the investor to a potential loss of principal.

When Would a CD Be Right For You?

When you want to minimize investment risk, invest for five years of less, and keep your investment costs low, a CD may be right for you.

When Would An Annuity Be Right For You?

If you’re interested in taking a higher level of risk to earn more attractive returns, an annuity may be suitable for you. A fixed annuity offers a specific rate of return, and the opportunity to compound earnings on a tax deferred basis. 

Variable annuity earnings are also tax deferred, and you can invest in a diversified portfolio of stocks and bonds. Keep in mind, however, that variable annuities expose investors to more risk. 

Many investors use variable annuities to build a tax-deferred investment portfolio for retirement, or to pass assets on to heirs. A diversified investment portfolio and tax-deferred growth are attractive benefits to many investors who need to invest for the long term.

Both fixed and variable annuities are more expensive than CDs, and charge higher penalties of early withdrawal. If you need the invested funds to cover a potential emergency, put your dollars into a checking or savings account.

Final Thoughts

Talk with a financial advisor, and do your homework. Consider the potential risks and rewards for each investment alternative. 

Make sure that you understand the fees you must pay, the guaranteed rates of return you’ll earn (if any), and the penalties incurred for early withdrawal.

If you diversify your investments, you can earn a higher return than rates on bank CDs and savings accounts.